Jason Gottlieb and Michael Mix Co-Author Article in New York Law Journal on Awarding Judgments in Crypto

Partners Jason Gottlieb and Michael Mix co-authored an October 5 article in the New York Law Journal entitled “Crypto Judgment Day: Issuing Judgments in Cryptocurrency in New York.” The article explores the unanswered question of whether plaintiffs who win damages in crypto-related litigation may receive judgment in non-fiat currency.

Gottlieb and Mix write that while the issue of non-fiat damages is as yet unprecedented, New York Statute § 27, which addresses judgments in foreign fiat currency, may provide a guidepost. The statue states that if an obligation is denominated in a currency other than the U.S. dollar, a court will enter a judgment in the foreign currency of the underlying obligation, at the exchange rate prevailing on the date of judgment. However, the authors state, “There is no definitive New York case determining whether or not a judgment may be denominated in cryptocurrency without conversion, or whether § 27 even applies to cryptocurrency.”

The authors discuss other federal cases that could provide insight into how crypto judgments may be handled, and acknowledge that the complex classification of cryptocurrency as currency, security, or commodity may also affect a court’s judgment. Ultimately, Gottlieb and Mix conclude that until these many questions are answered, “litigants who transact in cryptocurrency will have no certainty as to how their eventual judgment will be denominated.”

Click below to read the article in Word.